The announcement comes just days after loss-making Konica Minolta announced it would shed 2,400 jobs worldwide in order to achieve its financial goals.

In a joint statement announcing the plans, the two Japanese manufacturers said that the potential strategic alliance would optimise “procurement, toner development, and production efficiencies”, and that the market landscape for MFPs and printers “requires proactive measures”.

“The companies are also seeking to expand other business alliances and continue discussions.”

Fujifilm would hold a majority stake in the venture.

The initial focus would be on three areas: a business alliance for the procurement of raw materials and parts; an alliance covering toner development and production; and “other business alliances” covering strategic collaborations that will be addressed separately.

Naoki Hama, president and CEO of Fujifilm Business Innovation, commented: “The ongoing discussions for this business alliance are of immense importance as we strive to strengthen our competitiveness and expand our global presence to make a significant leap forward. We are confident that this partnership will create a new framework to enhance our supply chain and build a robust business foundation.”

Konica Minolta president and CEO Toshimitsu Taiko said: “Sharing a common understating of the challenges facing the business, the two leading companies will be able to mutually maximise strengths through this alliance. I am looking forward to working together to improve investment efficiency and cost-competitiveness, strengthen capabilities for stable supply, environmental initiatives, and business continuity plans, and pursue the potential for enhancing business resilience as global manufacturers.”

The tentative timeline for the establishment of the JV is the second quarter of the financial year 2024, so the July-September period.

Fujifilm is much bigger than KM, posting sales of Pound 14.86-bn in the last financial year ending March 2023, and, crucially, Fujifilm is profitable. 

(Source: PrintWeek.com)